How to Choose the Right Contractor for Your Property Rehab

[Jimmy Lynn]

Define Your Project: Start by clearly defining your project scope, goals, and budget. Determine what kind of renovation work you need, the desired timeline, and any specific requirements or preferences you may have.

Seek Recommendations: Ask friends, family, neighbors, or colleagues who have recently undertaken similar projects for recommendations. Word-of-mouth referrals can be valuable in finding reliable contractors.

Research Online: Use online resources such as contractor directories, review websites, and social media platforms to search for contractors in your area. Look for contractors who specialize in the type of renovation work you need.

Check Licenses and Insurance: Ensure that the contractors you are considering have the necessary licenses and permits required by your local authorities. Additionally, verify that they have adequate liability insurance and worker's compensation coverage to protect you from any potential liabilities.

Review Portfolios and References: Request portfolios or examples of previous projects from the contractors you are considering. Review their work to see if it aligns with your expectations. Additionally, ask for references and contact previous clients to inquire about their experience working with the contractor.

Conduct Interviews: Narrow down your list of potential contractors and schedule interviews with them. Prepare a list of questions regarding their experience, qualifications, project management approach, estimated timelines, and cost breakdowns. Pay attention to their communication skills and how well they understand your vision.

Obtain Multiple Bids: Request detailed bids from at least three contractors. The bids should include a breakdown of costs, materials, labor, and a proposed timeline. Be cautious of unusually low bids, as they could indicate subpar workmanship or the use of low-quality materials.

Check Credentials and Experience: Verify the credentials and experience of the contractors you are considering. Look for memberships in professional associations, certifications, and years of experience in the industry. A reputable contractor should have a track record of successful projects and a solid reputation.

Consider Compatibility and Communication: Assess how well you communicate and connect with each contractor during the interview process. A good working relationship and effective communication are vital for a smooth renovation project.

Review Contracts Carefully: Once you've selected a contractor, review the contract thoroughly before signing. Ensure that all project details, timelines, costs, payment terms, and warranties are clearly stated. Seek legal advice if necessary.

Take notice of how attentive the contractor is when walking through your project during the interview process. Did they take notes? Did they offer expert suggestions, etc? If not, you may want to move on.

[Andy Sabisch]

Get recommendations is the #1 thing to do . . . that is why connecting with other local investors (REIGs, BP, etc.) is critical BEFORE you take possession of the property.  Spend time nurturing a relationship before you call for the first estimate if possible because most contractors are getting slammed from new investors that want to look at 100 homes hoping to buy one.  After a while, your phone will stop ringing with callbacks from contractors.

Several of the other bullets in the original post are applicable to larger projects and asking for this for any project may turn the contractor off before even starting.  If you are having a bathroom replaced (no changes in structure), then asking for photos of past projects may be overkill.  

Not paying upfront is another critical factor that many people forget and get burned (and I am speaking from personal experience).  If you have not dealt with the contractor before and are asked for 50% or so down, keep calling and find someone else.  There are reputable ones that do not require that in advance which often means that they are floating one job to pay another and so on.

There are a number of good contractors out there and when you find one, hang on and become their steady work and they will remember that when another project comes up.